Instruction No. 2012-I-09 of December 13, 2012, amending the application form for the approval of investment firms

PRUDENTIAL CONTROL AUTHORITY
Instruction No. 2012-I-09 amending the application form for the approval of investment firms

The Prudential Control Authority,

Having regard to Commission Regulation (EU) No 1031/2010 of 12 November 2010 on the timing, management and other aspects of the auctioning of greenhouse gas emission allowances pursuant to Directive 2003/87/EC of the European Parliament and of the Council establishing a system for greenhouse gas emission allowance trading within the Community, in particular Articles 18 and 59;

Having regard to Commission Regulation (EU) No 1210/2011 of 23 November 2011 amending Regulation (EU) No 1031/2010, in particular to determine the volume of greenhouse gas emission allowances to be auctioned before 2013, in particular Article 1(11);

Having regard to Ordinance No 2012-827 of 28 June 2012 on the greenhouse gas emission allowance trading system (period 2013-2020), in particular Articles 18 to 22;

Having regard to the Monetary and Financial Code, in particular Articles L. 561-2, L. 561-36, L. 613-35 and R. 532-1;

Having regard to the opinion of the Anti-Money Laundering Advisory Committee dated 23 November 2012;

Having regard to the opinion of the Prudential Affairs Advisory Committee dated 27 November 2012;

Decides:

Article 1

The file provided for in Article R. 532-1 of the aforementioned Code is amended as follows:

a) On page 1, following the paragraph “• a breakdown of projected operational flows over three years for each investment service”, a paragraph is inserted worded as follows:

“• a breakdown of projected operational flows over three years for the activity of participating in auctions of greenhouse gas emission allowances on behalf of clients”.

Instruction No. 2012-I-09 amending the application form for the approval of investment firms Prudential Control Authority 2

b) On page 21, following the paragraph “Custody and safekeeping”, a paragraph is inserted worded as follows:

“Participation in auctions of greenhouse gas emission allowances on behalf of clients”.

c) On page 34, the title of paragraph “C. Authorizations for clearing activity and the ancillary service of custody or administration of financial instruments” becomes:

“C. Authorizations for clearing activity, the ancillary service of custody or administration of financial instruments and participation in auctions of greenhouse gas emission allowances on behalf of clients”.

d) On page 35, following the paragraph “– Describe the arrangements to ensure the protection of clients’ assets (Article 313-13 of the General Regulations of the Autorité des marchés financiers)”, two paragraphs are inserted worded as follows:

“– Participation in auctions of greenhouse gas emission allowances on behalf of clients

• Describe the activity;”

e) On page 42, the title of paragraph “B. Compliance monitoring for investment services, the ancillary service of custody or administration of financial instruments and clearing activity” becomes:

“B. Compliance monitoring for investment services, the ancillary service of custody or administration of financial instruments, clearing activity and participation in auctions of greenhouse gas emission allowances on behalf of clients”.

f) On page 43, following the paragraph: “– Regarding the operation of a multilateral trading facility, communicate the arrangements implemented to ensure monitoring of compliance with the system’s rules by its members.”, a paragraph is inserted worded as follows:

“– Regarding participation in auctions of greenhouse gas emission allowances, communicate the arrangements implemented to manage conflicts of interest and best serve the interests of clients”.

g) On page 43, the title of paragraph “C. Vigilance regarding money laundering operations (Titles VI and VII of Book V of the Monetary and Financial Code; Regulation No 91-07 of 15 February 1991 and No 2002/01 of 18 April 2002 of the Banking and Financial Regulations Committee)” becomes:

“C. Obligations relating to the fight against money laundering and terrorist financing (Title VI of Book V of the Monetary and Financial Code; Regulations No 97-02 amended of 21 February 1997 and No 2002-01 of 18 April 2002 of the Banking and Financial Regulations Committee)”.

Instruction No. 2012-I-09 amending the application form for the approval of investment firms Prudential Control Authority 3

h) On page 44, following paragraph C, two paragraphs are inserted worded as follows:

“– Describe the arrangements put in place by the institution; – If the institution wishes to bid in auctions of greenhouse gas emission allowances, describe the measures implemented in this case”.

Article 2

The file thus modified is annexed to this Instruction.

Paris, 13 December 2012

The President of the Prudential Control Authority, [Christian NOYER]